According to the National Development Strategy of Moldova for 2020, the Republic of Moldova envisages to improve the business environment so that by 2020 the risks and costs associated with every stage of the life cycle of business are smaller than in the other countries from the region, it being governed by the free competition principle. The impact of business environment improvement will result in more investments and exports, the growth of the number of reliable companies motivated to implement innovations, able to create attractive jobs, ensure high productivity and competitive production for export, sound effect through the advancement of the Republic of Moldova in the international classifications Doing Business, Global Competitiveness Report, Index of Economic Freedom and the Logistics Performance Index, exceeding the average level of the region. Optimizing the procedures and term required for an economic entity to launch, conduct and liquidate the business by applying innovative approaches in business regulation, such as the digitalization of public service delivery, as well as shifting the focus from inspections to counseling, the inspections being underpinned by the principle of the perceived risk, will considerably improve the business environment and diminish the unnecessary administrative costs and, implicitly, will provide economic development. Beside the direct stimulation of business, investments and foreign trade, the optimization, through its innovative approach in public service delivery, will create a basis and significant incentive for innovations and for new jobs in the private sector.
The solutions for reforming the regulatory system will be efficient and sustainable if they are supported by enforcement and implementation mechanisms. To this end, efforts will be made to more actively involve the private sector in the initiation, development and review of regulations. Other important participants in this process are the courts that will need to promptly and accurately respond to the notifications made by individuals and businesses regarding the violation of their rights by public institutions, especially, in terms of the timely issue of permissive documents, provision of a transparent complaints system against all the institutions involved in business and foreign trade regulation, non-involvement of public institutions in the entrepreneurship activity, in case there are no obvious reasons and recovery of damage caused by them in the short term.
Competition is a vital factor for actuating domestic economy, improving the business environment and increasing its attractiveness both for the launch of new businesses and for their development. To ensure efficient and fair competition, the Republic of Moldova envisages to develop and implement a national program on competition and state support by replicating the best European practices to prevent, repress and restrict anti-competition activities of the economic entities and of public administration authorities.
The establishment of new enterprises will also be encouraged through the dissemination of success stories in the field of entrepreneurship and by supporting the entrepreneurship spirit, especially, among women, who represent only 27.5% of all the entrepreneurs. The existing mechanisms that provide trainings to small and medium enterprises and financial and logistics support will be extended and diversified.
Additionally, the efforts will focus on developing the capacity of quality infrastructure intended to facilitate exports and encourage the implementation of advanced technologies in local companies, including in agriculture so as to ensure the security of consumption. In addition, the implementation of reforms in health regulation and administration can optimally improve productivity and efficiency in the Republic of Moldova.
The economic activity of companies has direct environmental impact. At the same time, the rigid regulations on environment protection impose compliance costs for conducting business. Although these costs are justified from the perspective of sustainable development, there is a risk that the businesses will perceive them as excessive. In this regard, the new regulations will aim at assessing the environmental impact with a view to equally distribute the administrative burden on the economic entities without distorting the market mechanisms and creating prerequisites for unfair competition.
In a broad meaning, the quality of business environment affects the investment activity and economic development through administrative and compliance costs and risks associated with the opacity of regulations and discretionary enforcement of sanctions. The promotion of intelligent regulation and of a horizontal approach and the establishment of inter-operational standards in the field will create conditions for capitalizing all the business development opportunities.